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10 tax measures by the Arroyo regime
In a desperate bid to earn an additional P126.66 billion to offset the enormous budget deficit, defray huge expenses and pay for the gigantic government debt, the Arroyo regime plans to implement various additional tax measures that are sure to exacerbate the plight of the Filipino people who are already in very dire straits. Among them are
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- Increasing the VAT (value-added tax) from 10% to 12% in 2006 and 14% in 2007. Expected revenues: P19.9 billion.
- Imposing a 3% franchise tax on telecommunications companies, which will in turn pass this on to cellphone users. Expected revenues: P6 billion.
- Shifting from net to gross income taxation of corporations and self-employed individuals. It is a way for corporations to profit immensely without worrying about any tax on their profits after having settled their gross income tax. Meanwhile, the gross income tax which is practically a sales tax can more easily be passed on to consumers by simply raising the prices of goods produced or services provided by corporations. Expected revenues: P16.76 billion.
- Rationalizing fiscal incentives such as tax discounts or exemptions and subsidies, among others, to further comply with World Trade Organization regulations. Expected revenues: P5 billion.
- Imposing an index reclassification tax on "vices," such as liquor and cigarettes, which are consumed by many people. Expected revenues: P14 billion.
- Granting a general tax amnesty. By paying a considerably smaller amount, big corporations and wealthy individuals who have anomalously evaded taxes will be exempted from fulfilling bigger tax obligations in the past. Expected revenues: P25 billion.
- Increasing tariffs on the importation of petroleum products. Expected revenues: P4.6 billion.
- Hiking excise taxes on petroleum products. Expected revenues: P29.7 billion.
- Raising fees charged by various government agencies. Expected revenues: P5.7 billion.
- Enhancing the tax revenue potential of government-owned and -controlled corporations such as the Public Estates Authority and the Philippine Gaming and Amusement Corporation.
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 07 August 2004
English Edition
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Ang Bayan is the official news organ of the Communist Party of the Philippines issued by the CPP Central Committee. It provides news about the work of the Party as well as its analysis of and standpoint on current issues.
AB comes out fortnightly. It is published originally in Pilipino and translated into Bisaya, Ilokano, Waray, Hiligaynon and English.
Acrobat PDF files of AB are available online for downloading and offline reading printing. If you wish to receive copies of AB via email, click here. |
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